Survey Reveals 65% of Institutional Investors Consider Crypto Crucial for Portfolio Diversification

A new study conducted by Nomura, a Tokyo-based bank, and its cryptocurrency division, Laser Digital, reveals a notable increase in institutional investors' interest in digital assets. The survey, which gathered responses from over 500 investment professionals in Japan, found that 31% of respondents now have a positive outlook on crypto for the upcoming year, marking a rise from 25% in 2024. Moreover, negative sentiment has decreased, signifying a gradual change in perception as the asset class continues to mature. A key finding is that 65% of respondents view cryptocurrency as a vital portfolio diversifier, with 79% of those considering investment planning to do so within the next three years. Most institutions expect to allocate between 2% and 5% of their portfolio to crypto, indicating they are still in the early stages of adoption. This shift is supported by evolving regulatory and policy frameworks. In Japan, policymakers have refined crypto regulations over the past year, including discussions on classification, taxation, and investor protection. Globally, clearer rules in major markets, along with the approval and expansion of crypto investment products such as exchange-traded funds (ETFs) and tokenized assets, have reduced some of the uncertainty that previously deterred institutions. As a result, interest in crypto is expanding beyond mere price exposure, with over 60% of respondents expressing interest in staking, lending, derivatives, and tokenized assets, reflecting a growing demand for yield-generating strategies and more complex portfolio construction. Stablecoins are also gaining traction, with 63% of respondents identifying potential use cases such as treasury management, cross-border payments, and investment in tokenized securities. However, barriers to adoption remain, including concerns around volatility, counterparty risk, and the lack of established valuation frameworks. Regulatory uncertainty, although improving, has not been completely eliminated. Nonetheless, the survey suggests a shift in the conversation, with institutions now focusing on how to invest in crypto rather than whether to do so, indicating that digital assets are moving closer to becoming a standard component of institutional portfolios.